SendGrid, the Denver, Colorado, based startup which provides a cloud-based platform for automated emails and marketing campaigns has stepped into the public markets stage on Wednesday with a successful IPO. The company priced its share at $16 each for 8.2 million shares above its original tentative range of $13.50 to $15.50 per share, raising $131 million. SendGrid is planning to list itself on NYSE under the symbol SEND.
The IPO opened at $18.55 and momentarily went up to $19 before it settled at just about $18 for most part of the day. Overall the stock got close to 14%. For each share valued at $18 the company’s market cap is $725 million as compared to its last valuation as a private company of $578 million. Earlier SendGrid raised about $194 million from private investors.
As SendGrid’s stock went up by 12.5 percent above its initial opening price, it was time for a little celebration. A huge SendGrid sign was hung from pillars of the New York Stock Exchange building. Times Square and the city subway system were lit with the digital signs of SendGrid.
“Any company that reaches an IPO has achieved a milestone that is pretty rare,” said Scott Heimes, SendGrid’s chief marketing officer. “We wanted to look at this day as a celebration, but it’s also a tremendous marketing opportunity for us.”
SendGrid’s three founders, Isaac Saldana, Tim Jenkins, and Jose Lopez along with CEO Sameer Dholakia rang the morning bell to open the NYSE. The live telecast was viewed by 1,400 viewers.
“This is just one day out of many milestones we’ll experience in the future,” Heimes said. “We’re here today because of our people. It’s a dedicated team of Gridders that have helped us reach this point. Our four H’s — honest, hungry, humble and happy — they will continue and we’ll continue to talk about them and live those values every day. We’re excited about the milestone, but it’s really just one step in a long journey.”
Although SendGrid has not yet reached profitability, it has seen revenues rise since its founded in 2009. The company’s sales hit $80.2 million in the first months this year which is higher compared to all last year. The company has also grown from three founder members to a team of 408 employees in the last eight years.